Stochastic Cross Alert Indicator
Platform: MT4 Type: Oscillator Last update: September 25, 2024The Stochastic Cross Alert Indicator is, as the name suggests, based on a popular technical indicator of the family of the oscillators. The oscillators define when the market is overbought and oversold. That gauge isn’t an exception, but it provides signal alarms in the form of buy/sell arrows, which is a favorite way of many traders.
Anatomy of the Stochastic Cross Alert indicator
The Stochastic Cross Alert Indicator does all the necessary calculations in the background and gives the signals by plotting simple upward/downward arrows around the price candlesticks. For a long trade, it draws a buy arrow on the chart when the indicator lines cross each other from below 20 level back above (oversold readings). Similarly, a short trade is triggered when a red sell arrow appears on the chart and the lines cross each other from above 80 level back below (overbought readings). Due to the nature of the indicator, it works well during sideways markets and performs poorly during strong trends.
If you prefer to customize the settings, take a look at these features:
Buy Signal
Follow these steps for a long trade:
- There is a range market
- A green upward arrow is plotted
- Buy trade is triggered after candle close
- Set stop loss a few pips below the most recent market low
- Take profit when opposite arrow apperas
Sell Signal
Follow these steps for a short trade:
- There is a range market
- A red downward arrow is plotted
- Sell trade is triggered after candle close
- Set stop loss a few pips above the most recent market high
- Take profit when opposite arrow apperas
